Jio backs data localisation to stave off cyberattacks

The company said data localisation will also spur investments in creating servers and cloud capacities, boosting R&D and creating employment. ET Bureau | July 22, 2019, 07:25 IST

Reliance Jio , the wholly-owned telecom unit of RIL, has stressed on the need for data localisation and a regulatory framework that ensures corporates take adequate measures for data protection, saying it is critical to stave off increasing cyberattacks.

"Jio has been a strong supporter of local storage of data, which is critical for national interest and security, given the increasing sophistication of cyberattacks. Jio believes that Indians are the true owners of their data and the ownership should not be transferred to any corporate entity," RIL said in its annual report for FY19. "This would require a regulatory framework to ensure that corporates are taking adequate measures to ensure data protection."

The company said data localisation will also spur investments in creating servers and cloud capacities, boosting R&D and creating employment.

The government is slated to shortly introduce the Personal Data Protection Bill, 2018, in Parliament, which addresses concerns related to security and privacy of data, consumption of which has surged in India, thanks to affordable rates of mobile Internet and of smartphones.

The operator is betting on growing tele-density in rural areas, rise in consumption and the demand for smartphones for its expansion from being a telco to a digital services player that also has agriculture and healthcare in focus. - Our Bureau

It expects mobile Internet users to grow to over 800 million, as currently only some 400 million Indians using smartphones compared with 850 million unique subscribers of mobile phones, implying a bulk are still on feature, or basic, phones with no Internet connectivity. Jio, which had over 331 million users at June end, also said a "low" 25% Internet penetration in rural areas compared with 93% for urban markets "presents opportunity to expand digital consumer services".

Jio also chalked out future growth drivers, including tapping further into the feature phone market with its 4G device, JioPhone, its fibre-to-the-home (FTTH) network, which is in the final phase of testing, before a commercial launch later this year, build the enterprise business, specially by providing services to small and medium enterprises, and offer customers a bouquet of content and digital services.

The operator, which upended the market since its advent in 2016 with cheap data rates and free voice, also highlighted how some of the regulatory measures will quicken the adoption of its services.

"From regulatory perspective, Trai had set a definitive path towards eliminating Interconnect Usage Charges (IUC) with effect from January 1, 2020. This will hasten the adoption of more efficient technologies like VoLTE, which have a negligible cost for carrying and servicing essential voice services," stated the annual report. IUC is a charge paid to the telco on whose network a call terminates. Jio is the only operator to offer an all-VolTE service while Bharti Airtel and Vodafone Idea are now transitioning to that technology.

The operator said it aims to play a key role in 5G development. "Trai has also set the ball rolling for 5G spectrum auctions in India with availability in newer frequency bands like 700 MHz and 3,300-3,600 MHz. Jio with its 5G-ready network would play a key role in development of the 5G ecosystem in the country, based on market dynamics," it said.

The spectrum auctions for 5G and 4G are expected this year end. While Airtel and Vodafone Idea have said they won't buy 5G airwaves at the regulator-suggested price of 492 per MHz, Jio has been non-committal. The price recommended by the telecom regulator is yet to be cleared by the Department of Telecommunications (DoT), which previously had also backed lowering of the rates.

Anshuman Thakur, Jio's strategy head, has said one should await the government's final call on prices. "We will see where the government is on spectrum pricing. The government is not in the business of maximising what it can from assets. It is a facilitator to operators."